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Everything-as-a-Service the future for MSPs

Those MSPs that want to be successful will have to add a lot more services to their portfolios warns 451 Research

The managed services market is continually evolving and the appetite from customers for more services is rising as they roll out more changes across their organisations.

Findings from 451 Research have indicated that as more users take steps to increase digital transformation they are looking for MSPs that can take more of the burden out of running their infrastructure.

The research firm is pointing to "Everthing-as-a-Service" as the next big cloud opportunity with those able to offer automated technology with high-touch delivery the most likely to succeed.

MSPs that want to take advantage of the next wave of growth will be expected to deliver a range of services - IaaS, PaaS and SaaS - and go beyond that to deliver emerging options, like managed cyber disaster recovery and networking services.

The firm's Voice of the Enterprise: Hosting and Cloud Managed Services study showed that managed and security services were attached to roughly half of the total hosting and cloud opportunity, and that is set to increase year-on-year.

There is also an indication that those service providers that decide to concentrate on a specific geography or vertical market will also be more successful because customers are looking for high-touch delivery. The market is moving away from cloud construction to cloud consumption and those channel players that recognise that shift and emphasise services rather than tin will be in a stronger position.

"There is an appetite for a wider range of bundled offerings from the managed service sector including systems integrators, VARs and others with service delivery experience," said Rory Duncan, research director for managed services and hosting at 451 Research.

"We see a significant opportunity for technology vendors to partner with service providers to offer higher-value, niche and vertical offerings as these services rapidly emerge,” he added.

The pressure on MSPs going forward will be to join the dots to make sure they can deliver a much more wide ranging number of services to users.

But there are also considerations for vendors to make about who to partner with and which MSPs are going to be the most prepared to develop their offerings and add more services and should be included in their programmes going forward.

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